When business owners do not have the capital to fund their endeavors they must seek financial assistance from external resources. The type of business you operate has an impact on your funding options. For example, small businesses do not attract venture capital financing the way large, high-growth organizations do, but they are ideal for angel investors. Research your business' funding options to determine the alternatives that are best for your company.

Micro-Loan Programs

Micro-loans are small loans given to small businesses and not-for-profit children centers that average about $13,000, according to the Small Business Administration. The maximum loan amount under the micro-loan program is $35,000. Micro-loans may be used as working capital or to pay for inventory, fund repairs and purchase supplies and equipment. Micro-loans are not to be used for paying off debt and purchasing real estate, the SBA notes. Borrowers of micro-loans are obligated to pay back the full amount of the loan, plus the accrued interest. The repayment terms vary depending on the lender.

Green Banks

The global initiative to be more environmentally conscious and conservative is being rewarded through green funding alternatives, known as green banks. Green banks are financial institutions that invest money in the green industry. Green banking centers are on the rise, trying to encourage a green economy by incentivizing businesses to go green, The New York Times says. New and seasoned businesses that have eco-friendly goals, such as installing solar panels or incorporating geothermal heating, have the opportunity to receive funding from green banks. Green banks require businesses to submit loan proposals explaining the type of green initiatives the company intends to carry out. Loan amounts are assigned based on the business or project’s forecasted value.

Investors

Angel investors and venture capitalists are sources of business funding available to large and small companies. Angel investors seek out smaller firms that are starting up, but require financial assistance to get off the ground. The amount of money that angel investors invest is not as grand as venture capitalists, whose investments average between $500,000 and $10 million, according to Entrepreneur.com. Venture capitalists look for high-growth opportunities because they have a lot of money to invest, so they want a high return on their investment. Venture capitalists want to see their investments grow, so they may want to sit on your company’s board or act as a co-owner or partner. Because their money is on the line, venture capitalists like to have a say in the financial decision-making of the company.

About the Author

Kyra Sheahan has been a writer for various publications since 2008. Her work has been featured in "The Desert Leaf" and "Kentucky Doc Magazine," covering health and wellness, environmental conservatism and DIY crafts. Sheahan holds an M.B.A. with an emphasis in finance.